Blolooo 8lolo o0oo ol8 Larry's Landscaping, Inc. Starts Business On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping, Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant was the only transaction in January 2021. Alt In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed to operate the business. These items of Property, Plant, & Equipment were not placed into service until March 1; thus there will be no Depreciation recorded in the month of February. In March 2021, Larry's Landscaping starting operating the business by performing landscaping services for customers. The Tollowing are the Balance Sheets for Larry's Landscaping as of December 31, 2020 (the end of last period) and March 31, 2021 (the end of this period): Larry's Landscaping Balance Sheets as of the End of December 2020 and March 2021 March 31, 2021 December 31, 2020 Assets Cash $ 17,500 Total Current Assets 17,500 Equipment Building ... Accumulated Depreciation Equipment Accumulated Depreciation Building ... 40,000 100,000 (500) (1,000) 20,000 Land .......... Total Property, Plant & Equipment 158,500 Total Assets $176,000 Liabilities Note Payable Long-Term .. .. $0 $110,000 110,000 Total Liabilities Owners' Equity 6,000 54,000 6,000 66,000 Common Stock Paid-in Capital in Excess of Par Value... Retained Earnings Total Owners' Equity Total Liabilities and Equity $176,000
Blolooo 8lolo o0oo ol8 Larry's Landscaping, Inc. Starts Business On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping, Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant was the only transaction in January 2021. Alt In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed to operate the business. These items of Property, Plant, & Equipment were not placed into service until March 1; thus there will be no Depreciation recorded in the month of February. In March 2021, Larry's Landscaping starting operating the business by performing landscaping services for customers. The Tollowing are the Balance Sheets for Larry's Landscaping as of December 31, 2020 (the end of last period) and March 31, 2021 (the end of this period): Larry's Landscaping Balance Sheets as of the End of December 2020 and March 2021 March 31, 2021 December 31, 2020 Assets Cash $ 17,500 Total Current Assets 17,500 Equipment Building ... Accumulated Depreciation Equipment Accumulated Depreciation Building ... 40,000 100,000 (500) (1,000) 20,000 Land .......... Total Property, Plant & Equipment 158,500 Total Assets $176,000 Liabilities Note Payable Long-Term .. .. $0 $110,000 110,000 Total Liabilities Owners' Equity 6,000 54,000 6,000 66,000 Common Stock Paid-in Capital in Excess of Par Value... Retained Earnings Total Owners' Equity Total Liabilities and Equity $176,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Larry s Landscaping
Statement of Cash Flows (Indirect Method)
for the Period January 1 to March 31, 2021
Cash Flows from Operating Activities
Net Income
Cash Provided by Operating Activities
Cash Flows from Investing Activities
Cash Used by Investing Activities
Cash Flows from Financing Activities
Cash Provided by Financing Activities
Increase in Cash from January 1 to March 31, 2021
Beginning Cash Balance January 1, 2021
Increase in Cash from January 1 to March 31, 2021
Ending Cash Balance March 31, 2021
11-1
11-2
11-3
11-4
Ready
Wyse
Esc
F1
F2
Transcribed Image Text:Blolooo
Blolo o000 o18
Larry's Landscaping, Inc. Starts Business
On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started
by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping,
Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant
was the only transaction in January 2021.
Alt
In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping
issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also
in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed
to operate the business. These items of Property, Plant, & Equipment were not placed into service
until March 1; thus there will be no Depreciation recorded in the month of February.
In March 2021, Larry's Landscaping starting operating the business by performing landscaping
services for customers.
The rollowing are the Balance Sheets for Larry's Landscaping as of December 31, 2020 (the end of
last period) and March 31, 2021 (the end of this period):
Larry's Landscaping
Balance Sheets
as of the End of December 2020 and March 2021
March 31, 2021
December 31, 2020
Assets
$ 17,500
17,500
Cash
Total Current Assets
Equipment
Building ...
Accumulated Depreciation Equipment
Accumulated Depreciation Building ...
Land ..........
Total Property, Plant & Equipment 158,500
40,000
100,000
(500)
(1,000)
20,000
Total Assets $176,000
Liabilities
Note Payable Long-Term .. ..
$110,000
110,000
$0
Total Liabilities
Owners' Equity
6,000
54,000
6,000
Common Stock
Paid-in Capital in Excess of Par Value...
Retained Earnings
Total Owners' Equity
66,000
Total Liabilities and Equity $176,000
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